spending

White House details how much Tennessee would receive from infrastructure bill

President Joe Biden’s administration is detailing how Tennessee would stand to benefit from the $1 trillion infrastructure bill pending in the U.S. Senate.

Here’s the release from the White House:

— Repair and rebuild our roads and bridges with a focus on climate change mitigation, resilience, equity, and safety for all users, including cyclists and pedestrians. In Tennessee there are 881 bridges and over 270 miles of highway in poor condition. Since 2011, commute times have increased by 7.7% in Tennessee and on average, each driver pays $209 per year in costs due to driving on roads in need of repair. Based on formula funding alone, Tennessee would expect to receive $5.8 billion for federal-aid highway apportioned programs and $302 million for bridge replacement and repairs under the Infrastructure Investment and Jobs Act over five years. Tennessee can also compete for the $12.5 billion Bridge Investment Program for economically significant bridges and nearly $16 billion of national funding in the bill dedicated for major projects that will deliver substantial economic benefits to communities.

— Improve healthy, sustainable transportation options for millions of Americans. Tennesseans who take public transportation spend an extra 67.9% of their time commuting and non-White households are 5.6 times more likely to commute via public transportation. 21% of transit vehicles are past useful life. Based on formula funding alone, Tennessee would expect to receive $633 million over five years under the Infrastructure Investment and Jobs Act to improve public transportation options across the state.

— Build a network of EV chargers to facilitate long-distance travel and provide convenient charging options. The U.S. market share of plug-in electric vehicle (EV) sales is only one-third the size of the Chinese EV market. The President believes that must change. The bill invests $7.5 billion to build out the first-ever national network of EV chargers in the United States and is a critical element in the Biden-Harris Administration’s plan to accelerate the adoption of EVs to address the climate crisis and

— Help connect every American to reliable high-speed internet. 5.9% of Tennesseans live in areas where, under the FCC’s benchmark, there is no broadband infrastructure. Even where infrastructure is available, broadband may be too expensive to be within reach. 17% of Tennessee households do not have an internet subscription. Under the Infrastructure Investment and Jobs Act, Tennessee will receive a minimum allocation of $100 million to help provide broadband coverage across the state, including providing access to the at least 402,000 Tennesseans who currently lack it. And, under the Infrastructure Investment and Jobs Act, 2,009,000 or 30% of people in Tennessee will be eligible for the Affordability Connectivity Benefit, which will help low-income families afford internet access.

Over the coming days and weeks, we will expect to receive additional data on the impact of the Infrastructure Investment and Jobs Act in Tennessee.

Lee details amendments to annual spending plan

Gov. Bill Lee speaks to reporters outside the War Memorial Auditorium in Nashville on Jan. 19, 2021. (Erik Schelzig, Tennessee Journal)

Gov. Bill Lee is making his end-of-session amendment to the state’s annual spending plan. Here’s a release from the governor’s office detailing the proposal:

NASHVILLE, Tenn. – Today, Tennessee Governor Bill Lee announced his amendment to the proposed Fiscal Year 2021-2022 budget.  

The amendment includes $580 million in available funds as a result of fiscal prudence. These funds will be invested in strategic long-term projects that focus on a return to pre-pandemic priorities and deliver critical services while not growing government. The budget amendment also includes nearly $100 million for a two-week sales tax holiday on all grocery sales, purchases at restaurants, and all prepared food. 

“This proposal supports Tennesseans by strategically investing in long-term initiatives that will move our state forward,” said Gov. Lee. “I’m especially proud to provide tax cuts to get money back to Tennesseans to encourage them to frequent industries that have been disproportionately and negatively impacted this year.”  

This amendment reflects the Governor’s priorities and includes record investments in broadband, economic development, safety and law enforcement, increasing reserves, and education.  

“Due to Tennessee’s strong financial leadership, Tennessee has been ranked number one in fiscal stability by US World News & Report in both 2019 and 2020,” said Commissioner of Finance and Administration Butch Eley. “Our prudent and cautious approach has established Tennessee as a leader in fiscal conservatism, and we thank the General Assembly for their partnership in these efforts.” 

Notable investments in the FY 21-22 budget amendment include:   

Tax Cuts 

  • $25M for a two-week sales tax holiday for groceries 
  •  $75M for a two-week sales tax holiday for restaurants and all prepared food 
  •  $16M to reduce the professional privilege tax by 25 percent

K-12 Education and Mental Health 

  • $250M trust fund to assist K-12 families who are facing significant mental health issues in the wake of COVID-19 
  • $18.5M to transportation to students for summer learning  
  • $2M to provide an additional 4 high quality, grade aligned books and resources over the summer for the 88,000 rising first graders in Tennessee 

Higher Education 

  • $79M to eliminate current TCAT waitlists statewide, currently at 11,400 students 
  •  $25M to Tennessee Promise to permit increases in the Hope Scholarship  
  • $4M to increase Agriculture Extension Agents at University of Tennessee and Tennessee State University  

Rural & Agriculture  

  • $50K to support the state fair (in addition to the $250,000 recurring in originally proposed budget for total of $300K and $5M non-recurring)  
  • $3M to provide additional funding for rural projects as part of the Rural Economic Opportunity Fund (in addition to $21M in originally proposed budget for total of $24M)   

Safety 

  • $500K to provide gun safety programming for children  
  • $17M to replace radios for state troopers   
  • $18M to improve the statewide disaster communications system  
  • $680K to add 4 new Homeland Security Agents  

Economic Development 

  • $5M to provide grants to restore and preserve historic downtowns across the state  
  • $3M to increase employment in Tennessee through the Small Business Innovation program 

Transportation 

  • $3M recurring and an additional $10M nonrecurring to provide additional direct funding to airports across Tennessee through the Transportation Equity Fund (total $50M investment in air infrastructure) 

To view the full budget amendment, click here.